By Zomma Group
As the year draws to a close, business owners have a valuable opportunity to optimize their tax position and start the new year on stronger financial footing. Year-end tax planning is more than just a compliance exercise, it’s a strategic moment to align financial performance with long-term goals.
Before December 31st, U.S. businesses should review a few key areas:
- Accelerate Deductions and Defer Income: If cash flow allows, consider paying certain expenses before year-end, such as bonuses, rent, or vendor invoices to reduce taxable income for 2025.
- Take Advantage of Section 179 and Bonus Depreciation: Businesses investing in equipment or technology may be able to write off significant portions of the cost immediately.
- Evaluate Retirement Contributions: Contributions to qualified plans not only benefit employees but also provide meaningful deductions.
- Review Estimated Taxes and Loss Carryforwards: Check quarterly tax payments and analyze any net operating losses that can offset future income.
- Check Entity Structure and State Nexus: Growth, remote work, and interstate operations can change tax exposure, making this the right time for a structural review.
As always, every situation is unique, especially for international clients balancing U.S. and foreign tax considerations. Consulting with your CPA or tax advisor before year-end ensures you make the most of every opportunity.
At ZOMMA Group, we specialize in helping U.S. and international individuals and businesses navigate complex cross-border tax planning. Reach out before Year-end to prepare for a stronger and more tax-efficient 2026. luca.cancellieri@zommagroup.com